Payment platform PayPal announced in early August the launch of its own stablecoin, PYUSD, which is tied to the US dollar.
The token is based on the Ethereum blockchain and is issued by Paxos, which recently published its financial statements.
This indicates that each PYUSD is backed by the US currency, with more than 90% of the stablecoins stored in Paxos wallets while the remaining are on Kraken, Gate.io, and Crypto.com exchange addresses.
As of August 31, there are currently 44.4 million PYUSD in circulation, which are backed by US Treasuries.
The Paxos press service also stated that the company has $1.5 million in fiat currency reserves, which can be used to fulfill obligations to investors if needed.
On September 12, the Bitpay service announced that it will be supporting PYUSD as a means of payment.
However, experts question the popularity of this token due to the lack of cryptocurrency legislation in the US, as noted by Bank of America.